Zara, Next, H&M, Primark… Major international clothing brands are accused of unfair practices towards their suppliers in Bangladesh, with for example cancellations of orders, non-payments or late pay, according to a study released Wednesday.
This study by the Transform Trade association conducted with the University of Aberdeen and the Center for Global Development studied 1,000 Bangladeshi garment factories or producers, noting “unfair” practices that began during the COVID-19 pandemic, but continued thereafter.
Manufacturers surveyed “reported that brands and retailers had canceled orders, refused to pay, or requested discounts for orders already in production or shipped,” despite rising production costs since the economy reopened after lockdowns and soaring inflation.
Among the major brands that produce in Bangladesh, Inditex (parent company of Zara), Next, Primark or even H&M have all canceled around 30% of their orders and also asked for reductions or delayed payments. Gap, Walmart, C&A also, but in a smaller proportion, among many other examples.
“Such unfair practices affect suppliers’ employment practices, resulting in (…) job losses and declining wages,” the report said.
“One in five factories in particular indicated that they had difficulty paying the minimum wage in Bangladesh” since the end of the confinements, he adds, calling for the creation of a regulatory authority for the clothing sector in the countries. developed countries to put an end to these abusive purchasing practices.
The garment industry is regularly accused of abusive pay or labor practices, including in developed countries like the UK.